Stabbing at Steel

By

Timothy Collins

| Oct 11, 2013 | 3:38 PM EDT

I have been holding some of these steels names so long, I think they are beginning to rust. ArcelorMittal (MT) looked like a breakout candidate in the middle of August, then again in the middle of September and again, right now. The first two breakouts failed, but one of these breakouts is going to take and it is going to take in a large enough way that buyers will be very happy. Will it be this time around though?

Unfortunately, when playing a counter-trend type of position, you'll often find yourself having to take several stabs at it before it will work. In this case, if you took a shot going long in August, three days later you found yourself out for a small loss. September rolled around and you tried again but, again, found yourself stopped out a few days later for a loss. Obviously, you can't repeat this pattern indefinitely, but if you believe your upside is $4 or $5, then you can take a few shots if you limit your losses to $0.25 or $0.50. Of course this isn't ideal for everyone. It can be challenging to maintain the discipline, but it is one of those kinds of trades....278 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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